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Agreement

Accommodation Terms and Conditions

Chapter 1: General Provisions

(Application of Terms and Conditions)
Article 1
The Company shall rent automobiles (hereinafter referred to as "rental cars") to the Renter (including drivers, hereinafter the same) in accordance with these Terms and Conditions, and the Renter shall rent such rental cars. Matters not stipulated in these Terms and Conditions shall be governed by laws, regulations, or general customs.

2. The Company may, within the scope not contrary to the purpose of these Terms and Conditions, laws, and general customs, agree to special provisions. In such case, the special provisions shall take precedence.

Chapter 2: Rental Agreement

 

(Reservation)
Article 2
The Renter may, when renting a rental car, reserve in advance by specifying the vehicle type, start date and time, rental location, rental period, return location, driver, and other rental conditions, and the Company shall accept such reservations within the scope of available rental cars.

2. The reservation in the preceding paragraph shall be made upon payment of the reservation deposit equivalent to the amount specified in the rate table.

3. If the Renter fails to commence the execution of the Rental Agreement (hereinafter referred to as the "Rental Agreement") more than one hour after the reserved start time, the reservation shall be deemed canceled.

4. If the Renter intends to cancel or change the rental conditions of the reservation stipulated in paragraph 1, the Renter must obtain prior consent from the Company.

(Execution of the Rental Agreement)
Article 3
The Company shall execute the Rental Agreement upon the application of the Renter, except when there is no rental car available for lending or when the Renter falls under any of the items listed in Article 9.

In executing the Rental Agreement, the Company may require the Renter to present a driver’s license and other documents proving the identity of the Renter, to provide contact information such as a mobile phone number during the rental period, and may make copies of such documents and driver’s license.

2. The application for the Rental Agreement shall be made by specifying the rental conditions stipulated in Article 2, paragraph 1.

3. Upon execution of the Rental Agreement, the Company shall charge the rental fee separately specified.

(Formation of the Rental Agreement)
Article 4
The Rental Agreement shall be formed when the Company receives the rental fee and delivers the rental car to the Renter. In such cases, the reservation deposit shall be applied as part of the rental fee.

2. If, due to accident, theft, or other reasons not attributable to the Company, the Company cannot provide the reserved vehicle type, the Company may provide a substitute rental car (hereinafter referred to as a "substitute car").

3. In the case of the preceding paragraph, if the rental fee for the substitute car is higher than that of the reserved vehicle, the reserved vehicle rental fee shall apply. If it is lower, the rental fee for the substitute car shall apply.

4. The Renter may refuse to accept the substitute car provided under paragraph 2 and may cancel the reservation.

(Termination of the Rental Agreement)
Article 5
If the Renter falls under any of the following during the rental period, the Company may, without notice or demand, terminate the Rental Agreement and immediately demand the return of the rental car. In such cases, the Company shall not refund the rental fee already received pursuant to the preceding Article. However, if special terms specify post-payment of the rental fee, or if there remain unpaid fees due to extensions of the rental period, the Renter shall pay such fees.

(1) When the Renter violates these Terms and Conditions.  
(2) When the Renter causes a traffic accident due to reasons attributable to the Renter.  
(3) When the Renter falls under any of the items listed in Article 9.  

2. If, before the rental car is delivered to the Renter, the rental car becomes unusable due to damage or other causes, the Renter may terminate the Rental Agreement, except when measures are taken pursuant to Article 22, paragraph 3.

(Termination of the Rental Agreement Due to Force Majeure)
Article 6
If, during the rental period, the rental car becomes unusable due to natural disaster or other force majeure, the Rental Agreement shall be terminated.

2. If the preceding paragraph applies, the Renter shall immediately notify the Company accordingly.

(Mid-Term Cancellation)
Article 7
Even during the rental period, the Renter may cancel the Rental Agreement with the consent of the Company. In such cases, the Renter shall pay the mid-term cancellation fee stipulated in Article 26.

2. If the rental car is returned during the rental period due to accident or breakdown attributable to the Renter, the Rental Agreement shall be deemed canceled.

3. In the case of the preceding paragraph, when the Renter returns the rental car, the Company shall not refund the rental fee received pursuant to Article 4.

(Change of Rental Conditions)
Article 8
If the Renter wishes to change the rental conditions specified in Article 3, paragraph 2, after the Rental Agreement has been formed, the Renter must obtain the prior consent of the Company.

2. The Company may refuse to consent to changes to the rental conditions under the preceding paragraph if such changes would hinder rental operations.

(Refusal to Conclude the Rental Agreement)
Article 9
The Company may refuse to conclude the Rental Agreement if the Renter falls under any of the following items:

(1) When the Renter does not possess a valid driver’s license required to operate the rented car.  
(2) When the Renter is under the influence of alcohol.  
(3) When the Renter is under the influence of narcotics, stimulants, paint thinner, or similar substances.  
(4) When the driver designated at the time of reservation differs from the driver at the time of rental.  
(5) When there has been default on payment of rental fees in past rentals.  
(6) When there has been conduct corresponding to the prohibited acts listed in Article 17 during past rentals.  
(7) When the Renter intends to transport an infant under six years old without using a child seat.  
(8) When the Company deems the rental inappropriate under circumstances other than those listed above.

 

Chapter 3: Rental Cars

(Date and Time of Rental, etc.)
Article 10
The Company shall deliver the rental car specified in Article 3, paragraph 2 at the start date, time, and rental location indicated therein.

(Method of Rental, etc.)
Article 11
The Company shall deliver the rental car to the Renter after both the Company and the Renter have jointly conducted the daily inspection and maintenance stipulated in Article 47-2 of the Road Transport Vehicle Act, as well as the inspection of the vehicle’s external condition and accessories based on a separately prescribed inspection sheet, and confirmed that the rental car has no maintenance defects.

2. If, during the confirmation described in the preceding paragraph, the Company discovers maintenance defects in the rental car, the Company shall take measures such as replacing the vehicle.

3. Upon delivery of the rental car, the Company shall issue to the Renter a prescribed rental certificate describing matters as specified by the Kyushu District Transport Bureau, Kagoshima Transport Branch.

4. Child seats shall be properly installed by the Renter at the Renter’s own responsibility, and the Renter shall bear full responsibility in this regard.

Chapter 4: Rental Fees

(Rental Fees)
Article 12
The rental fees received by the Company under Article 4 shall be based on the rate table filed with and approved by the Kagoshima Transport Branch of the Kyushu District Transport Bureau at the time of rental.

2. The amount of rental fees received by the Company shall be the total of the basic rental fee and ancillary fees incidental to the rental, and at the time of return of the rental car, any additional charges such as extension fees, deductible amounts arising from accidents, or compensation for loss of use shall be settled if incurred in addition to the fees already received.

(Measures Accompanying Revision of Rental Fees)
Article 13
If the rental fees set forth in the preceding Article are revised after a reservation has been made under Article 2, notwithstanding paragraph 1 of the preceding Article, the rental fees shall be in accordance with the rate table applied at the time of reservation.


Chapter 5: Responsibilities

 

(Periodic Inspection and Maintenance)
Article 14
The Company shall lend rental cars that have undergone periodic inspection and maintenance in accordance with Article 48 of the Road Transport Vehicle Act.

(Daily Inspection and Maintenance)
Article 15
During the rental period, the Renter shall perform daily inspection and maintenance of the rental car prior to each day’s use, as stipulated in Article 47-2 of the Road Transport Vehicle Act.

(Duty of Care of the Renter)
Article 16
The Renter shall use and manage the rental car with the duty of care of a prudent manager.

2. The duty of care described in the preceding paragraph shall commence upon delivery of the rental car to the Renter and shall end upon its return to the Company.

(Prohibited Acts)
Article 17
During the rental period, the Renter shall not engage in any of the following acts:

(1) Using the rental car for automobile transportation business or similar purposes without the consent of the Company and the necessary permits under the Road Transport Act.  
(2) Subleasing the rental car, using it as collateral, or engaging in any act that would infringe the Company’s ownership rights.  
(3) Forging or altering the license plate of the rental car, or modifying or remodeling the rental car in a manner that alters its original condition.  
(4) Using the rental car for various tests or competitions, or for towing or pushing other vehicles, without the Company’s consent.  
(5) Using the rental car in violation of laws or public order and morals.  
(6) Without the Company’s consent, engaging in the following acts:  

   (i) Allowing a person other than the Renter or the driver designated at the time of execution of the Rental Agreement to drive the rental car.  
   (ii) Taking out automobile insurance for the rental car.  
   (iii) Carrying pets in the rental car. Even with the Company’s consent, pets may not be taken out of cages while inside the vehicle.  

(Obligation to Carry the Rental Certificate)
Article 18
During the rental period, the Renter shall carry the rental certificate issued under Article 11, paragraph 3.

2. If the Renter loses the rental certificate, the Renter shall immediately notify the Company accordingly.

(Liability for Compensation)
Article 19
If the Renter causes damage to a third party or the Company through the use of the rental car, the Renter shall be liable for compensation, except in cases not attributable to the Renter.

2. If the rental car or its accessories are damaged due to an accident attributable to the Renter, the Renter shall pay the Company compensation for loss of use during the repair period of the rental car or accessories, in accordance with the separately specified Non-Operation Charge (NOC).


Chapter 6: Measures in Case of Violations and Automobile Accidents

(Illegal Parking)
Article 20
If the Renter or driver commits illegal parking with respect to the rental car during use in violation of the Road Traffic Act, the Renter or driver shall immediately appear at the police station having jurisdiction over the location of the violation, pay the penalty for the illegal parking, and bear all expenses related to towing, storage, and retrieval resulting from the violation.

2. If the Company receives notification from the police regarding a parking violation involving the rental car, the Company shall contact the Renter or driver and instruct them to promptly move or retrieve the vehicle. The Company shall also instruct the Renter or driver to appear at the police station and resolve the violation by the expiration of the rental period or by the time designated by the Company. The Renter or driver must comply. If the rental car is moved by the police, the Company may, at its discretion, retrieve the car from the police.

3. After issuing the instruction in the preceding paragraph, the Company may verify whether the violation has been resolved by requesting documents such as the traffic violation notice, payment slip, or receipt. If not resolved, the Company may continue to instruct the Renter or driver until the violation is cleared. The Company may also require the Renter or driver to sign a written acknowledgment (hereinafter referred to as the “Acknowledgment”) admitting to the facts of the violation and compliance with legal measures. The Renter or driver must comply.

4. If deemed necessary, the Company may submit the Acknowledgment, rental certificate, and other documents containing personal information to the police, and may take necessary legal measures such as reporting to the Public Safety Commission in accordance with Article 51-4, paragraph 6 of the Road Traffic Act. The Renter or driver hereby consents to such measures.

5. If the Company is ordered to pay the penalty pursuant to Article 51-4, paragraph 1 of the Road Traffic Act, or bears expenses related to the search for the Renter or driver, or to the movement, storage, or retrieval of the vehicle, the Company may claim from the Renter or driver the amounts listed below (hereinafter “Parking Violation Related Costs”). The Renter or driver shall pay such amounts by the due date specified by the Company.

(1) The amount equivalent to the penalty.  
(2) Expenses incurred for the search, and for the movement, storage, or retrieval of the vehicle.  

6. If the Company has registered the Renter or driver in the National Car Rental Association’s information management system (hereinafter “Zenkyo System”) pursuant to the preceding paragraph, and subsequently the penalty is paid or the Company’s claim is settled in full, the Company shall delete the registration.

7. If the Renter or driver fails to comply with the Company’s instructions to resolve the violation pursuant to paragraph 2, or fails to sign the Acknowledgment pursuant to paragraph 3, or if the Company otherwise deems it necessary, the Company may charge the Renter or driver a parking violation penalty (hereinafter “Parking Violation Fee”), separately determined, which shall be applied toward the statutory penalty and related expenses.

8. If the Renter or driver has paid the Parking Violation Fee and expenses pursuant to paragraph 5, and subsequently the statutory penalty is refunded to the Company due to cancellation of the penalty order, the Company shall refund the equivalent portion of the penalty to the Renter or driver. The same shall apply if the Parking Violation Fee has been collected pursuant to the preceding paragraph.

 

(Accident Handling)
Article 21
If an accident involving the rental car occurs during the rental period, the Renter shall, regardless of the magnitude of the accident, take legally required measures and handle the matter as follows:

(1) Immediately report the circumstances of the accident to the Company.  
(2) Without delay, submit to the Company and its insurer all necessary documents and evidence relating to the accident.  
(3) Obtain prior approval from the Company before reaching a settlement or agreement with any third party regarding the accident.  
(4) Except where there are special reasons, repairs of the rental car shall be carried out by the Company or a repair shop designated by the Company.  

2. In addition to the measures described above, the Renter shall endeavor to resolve the accident at the Renter’s own responsibility.  

3. The Company shall provide advice and cooperate in the resolution of the accident for the benefit of the Renter.

(Compensation)
Article 22
The Company shall compensate, within the limits specified below, the liability of the Renter under Article 19, paragraph 2, through insurance policies covering the rental car and compensation systems established by the Company:

(1) Personal injury liability: Unlimited per person (including compulsory automobile liability insurance).  
(2) Property damage liability: Unlimited per accident; deductible: 50,000–150,000 yen.  
(3) Passenger injury compensation: Up to 30,000,000 yen per person.  

2. Any damage exceeding the limits specified in the preceding paragraph shall be borne by the Renter.  

3. If the Company pays damages exceeding the compensation limits specified in paragraph 1 on behalf of the Renter, the Renter shall immediately reimburse the Company for the excess amount.  

4. Compensation and insurance shall not apply in cases where the accident was not reported to the police and the Company, or where the accident falls under the exclusion clauses of the insurance contract, or where the accident occurred after violation of Article 9 or Article 17, or after unauthorized extension of the rental period.  

(Handling in Case of Breakdowns, etc.)
Article 23
If the Renter discovers any abnormality or breakdown of the rental car during the rental period, the Renter shall immediately stop operating the vehicle, notify the Company, and follow the Company’s instructions.

2. If the abnormality or breakdown is due to the Renter’s intent or negligence, the Renter shall bear the expenses necessary for retrieval and repair of the rental car.

3. If the rental car becomes unusable due to defects existing prior to delivery, the Renter may request a substitute rental car or equivalent measures from the Company.

4. Except as provided in the preceding paragraph, the Renter shall not claim damages from the Company for inability to use the rental car.

(Exemption Due to Force Majeure)
Article 24
If the Renter is unable to return the rental car within the rental period due to natural disaster or other force majeure, the Renter shall not be held liable for damages arising therefrom. In such cases, the Renter shall immediately notify the Company and comply with its instructions.

2. If the Company is unable to provide the rental car or a substitute car due to natural disaster or other force majeure, the Company shall not be liable for damages arising therefrom. In such cases, the Company shall promptly notify the Renter.


Chapter 7: Cancellation, Refunds, etc.

(Cancellation of Reservation, etc.)
Article 25
If the Renter cancels the reservation under Article 2 due to the Renter’s own circumstances, or fails to conclude the Rental Agreement within one hour after the scheduled rental time, the Renter shall pay a reservation cancellation fee equivalent to eight hours of rental charges as specified in the separately established fee schedule. If the Company has already received a reservation deposit, it shall be offset against the cancellation fee.

2. If the Company cancels the reservation or fails to conclude the Rental Agreement due to its own circumstances despite having received a reservation under Article 2, the Company shall return the reservation deposit.

3. If the Rental Agreement is not concluded for reasons other than those set forth in the preceding two paragraphs despite the reservation under Article 2, the reservation shall be deemed canceled. In such case, the Company shall refund the reservation deposit after deducting the reservation cancellation fee.

4. Except as provided in the preceding three paragraphs, neither the Company nor the Renter shall make any claims against each other in the event the Rental Agreement is not concluded.

(Mid-Term Cancellation Fee)
Article 26
If the Renter cancels the Rental Agreement mid-term under Article 7, paragraph 1, the Renter shall pay, in addition to the rental fees corresponding to the period up to the cancellation, the following mid-term cancellation fee:

Mid-Term Cancellation Fee = (Rental fee for the contracted rental period – Rental fee for the period up to cancellation) × 50%

(Refund of Rental Fees)
Article 27
The Company shall refund all or part of the rental fees received from the Renter under the following circumstances, as specified below:

(1) If the Renter cancels the Rental Agreement pursuant to Article 5, paragraph 2, the full amount of rental fees received.  
(2) If the Rental Agreement terminates pursuant to Article 6, paragraph 1, the balance remaining after deducting from the rental fees received the rental fees corresponding to the period up to termination.  
(3) If the Renter cancels mid-term under Article 7, paragraph 1, the balance remaining after deducting from the rental fees received the rental fees corresponding to the period up to cancellation.  

2. When making a refund under the preceding paragraph, the Company may offset any mid-term cancellation fee or other amounts payable by the Renter to the Company.


Chapter 8: Return

(Inspection of the Rental Car upon Return)
Article 28
When returning the rental car, the Renter shall return it in the same condition as confirmed at the time of delivery, except for normal wear and tear due to use.

2. Upon return of the rental car, the Company shall inspect the condition of the rental car in the presence of the Renter.

3. At the time of return, the Renter shall, in the presence of the Company, confirm that there are no personal belongings of the Renter or passengers left in the rental car. The Company shall bear no responsibility for any items left behind after return.

(Return Period)
Article 29
The Renter shall return the rental car within the rental period.

2. If the Renter extends the rental period pursuant to Article 8, paragraph 1, the Renter shall pay either the rental fee corresponding to the extended period or the sum of the original rental fee and the excess charge, whichever is lower.

3. Notwithstanding paragraph 1 of Article 8, if the Renter returns the rental car after the expiration of the rental period without obtaining the Company’s consent, the Renter shall pay a special excess charge calculated as follows:

Special Excess Charge = Excess hours × Excess hourly rate × 300%

(Return Location)
Article 30
The Renter shall return the rental car to the return location designated in Article 3, paragraph 2. However, if the return location has been changed pursuant to Article 8, paragraph 1, the rental car shall be returned to the new location.

2. In the case of the proviso in the preceding paragraph, the Renter shall bear the costs necessary for transporting the vehicle due to the change in the return location.

3. If the Renter returns the rental car to a location other than the designated return location in Article 3, paragraph 2 without obtaining the Company’s consent under Article 8, paragraph 1, the Renter shall pay a return location change fee calculated as follows:

Return Location Change Fee = Costs necessary for transporting the vehicle due to the change in the return location × 300%

(Fuel)
Article 31
If the rental car is not returned with a full tank of fuel, the Renter shall pay the fuel charges as separately specified by the Company.

(Non-Return of Rental Car)
Article 32
If the Renter fails to return the rental car to the designated return location under Article 29, paragraph 1 within 72 hours after the expiration of the rental period, and further fails to comply with the Company’s request for return, or if the whereabouts of the Renter are unknown, the Company shall take necessary legal procedures.


Chapter 9: Miscellaneous Provisions

(Consumption Tax)
Article 33
The Renter shall separately pay to the Company the consumption tax imposed on monetary obligations under this Agreement.

(Delayed Damages)
Article 34
If the Renter fails to perform monetary obligations under this Agreement, the Renter shall pay to the Company delayed damages at an annual rate of 14.6%.

(Use of Personal Information)
Article 35
The Renter or driver agrees that the Company may use personal information for the purpose of verifying identity and conducting necessary screening.

(Detailed Rules of the Agreement)
Article 36
The Company may establish detailed rules for the implementation of this Agreement.

2. When the Company establishes such detailed rules, it shall post them at each of its offices and include them in brochures and fee schedules issued by the Company. The same shall apply in the event of changes.

(Jurisdictional Court)
Article 37
If a dispute arises regarding the rights and obligations under this Agreement, the court having jurisdiction over the location of the Company’s head office or branch office shall be the court of competent jurisdiction.

Agreement

On the Provision of Information Regarding Drivers by Rental Car Operators

In order to prevent acts similar to passenger automobile transportation business, rental car operators are prohibited from engaging in the supply of labor by drivers (including the introduction and arrangement of drivers) accompanying the rental of vehicles, pursuant to “Handling of the Rental of Privately-Owned Automobiles by the Lender as the User of the Vehicle (Rental Cars)” (Jitabi No. 138, June 13, 1995), section 2(2), etc.

Furthermore, under the “Government Policy Response to the Third Proposal for Special Structural Reform Zones” (decided by the Headquarters for the Promotion of Special Structural Reform Zones on September 12, 2003), it has been stipulated that, on the premise that rental car operators themselves make efforts to eliminate business-like acts, the specific methods of providing information related to driver-dispatching organizations, etc., shall be clarified, as described below.

Provisions

 

1. Supply of Driver Labor, etc.
The supply of labor by drivers (including driver-dispatching organizations, hereinafter the same) accompanying rental car services, including the introduction and arrangement of drivers, shall continue to be prohibited.

2. Provision of Information on Drivers
On the premise of thoroughly preventing acts similar to passenger automobile transportation business—such as not providing information on specific drivers, and ensuring that the arrangement of drivers is carried out under the sole responsibility of the renter—the following rules shall apply:

(1) When providing information on drivers, the rental car operator shall provide information such as contact details for multiple drivers holding the necessary type of driver’s license for operating the rented vehicle. Information shall not be provided only for specific drivers or those affiliated with the operator’s group.

(2) When providing information on drivers, the rental car operator shall notify the renter of the following points, and the rental car operator shall not conclude any dispatch contract or similar agreement with the drivers whose information is provided:

① Information regarding drivers is provided voluntarily by the rental car operator solely based on a request from the renter.
② The renter shall, under his/her own responsibility, select a driver from those introduced and conclude the contract directly.
③ The rental car operator shall bear no responsibility whatsoever regarding the drivers for whom information was provided.

(3) When providing information on drivers, the rental car operator shall do so by presenting a list of drivers in the relevant region only when requested by the renter, and shall not engage in promotional activities regarding the provision of driver information.

Number

Kagoshima Prefectural Public Safety Commission 961280040065

Main Category

Motor Vehicles

Operator

SHIFT-x, Ltd.

License for Dealing in Second-Hand Goods

We hold the following permit required for leasing vehicles that use second-hand automobiles:

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